Why Wolseley and Severfield-Rowen Lagged the FTSE 100 Today

LONDON -- The FTSE 100 bounced back a little today after a couple of days of losses, climbing 0.51% to close at 6,556. Confidence seems to be flowing back as fears of the early cessation of economic-stimulus measures once again fade.

On a positive day of trading, which stocks lagged? Here are two from the indexes that slipped.

WolseleyWolseley shares plummeted 6.3% after the plumbing, heating, and building supplies firm released third-quarter figures. Revenue for the period ending April 30 was up 6% to £3.23 billion and up 2.4% in like-for-like terms. Gross margin remained consistent with a year ago, with trading profit up up 7.9% to £150 million. Net debt climbed from £277 million a year ago to £694 million.

But what spooked investors was the firm's performance in Europe: Like-for-like sales were down 9.2% in France, 4.6% in Central Europe, and 7.3% in the Nordic countries.

Severfield-Rowen Shares in structural-steel maker Severfield-Rowen dropped 4% to 48 pence after the firm slumped to a full-year adjusted pre-tax loss of £21.5 million. As previously announced, there will be no final dividend this year. The biggest problem has been the "Cheesegrater" building at 122 Leadenhall Street, where several contract issues have led to a significant financial loss.

We also heard that the firm has a new chief operating officer in Ian Cochrane. He is the former managing director of Fisher Engineering, which is now owned by Severfield-Rowen.

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